Welfare Spending By President And Congress From 1959 To 2014

America faces many problems today. The current economic recovery has been the slowest since the Great Depression, the national debt has surpassed $18 trillion, and the federal government continues to spend more than it collects. While it’s not unusual, unethical, or unconstitutional for the federal government to operate with deficits at times, the question is why does Washington continue to overspend? Is there a legitimate reason or is it neo-politics? In this article, we’ll take a look at spending on welfare programs during each president’s term from J.F.K. to Obama. We’ll also look at the party in control of Congress. Which one was the biggest spender as it pertains to welfare programs?

The Dark Side of Social Benefits

Politicians love to sing their own praises and for a very good reason. Otto von Bismarck, the first Chancellor of Germany, made an astute political observation in the 1880s when he stated, “A man who has a pension for his old age is much easier to deal with than a man without that prospect.” Bismarck openly acknowledged that this was a state-socialist idea and went on to say, “Whoever embraces this idea will come to power.” Thus, the strategy of using legislation to gain votes was forever embedded in the political landscape.

Whenever new legislation is proposed, each party tends to vilify the other, as they try to sway public opinion. This results in greater division in the country. Each time new legislation is proposed, we should ask two questions: “Can we afford it?” and “Do we really need it?” Unfortunately, the realm of fiscal policy (i.e. tax policy, spending, and regulation) will never be pure as long as politicians use it to sway voters. Rather than parroting a few convenient soundbites or talking points, we need to get all of the facts.

Are you weary over the battle between Democrats and Republicans? Are you tired of the constant drip of liberal versus conservative as the battle between the left and the right continues to divide our nation? It’s as though we’re passengers on the titanic and as it sinks, all we do is argue over the type of music the orchestra is playing. Have you ever wondered why politicians vilify each other on camera and then get together like best friends for drinks or dinner after work? I believe this is part of the answer. The most important issue to politicians is to get re-elected. And each party understands the game. Let’s revisit Bismarck’s comment, “Whoever embraces this idea [social programs] will come to power.” To get reelected, politicians often compromise their principals and use the power of the purse to buy votes. Unfortunately, the purse belongs to you and I and the responsibility to repay our debt will fall on us, our children, and our grandchildren. So, is one party more culpable than the other when it comes to spending?

Welfare Spending

Let’s take a thorough look at federal welfare spending from 1959 through 2013. The following graph includes spending for two data points:

1) Government current expenditures: Federal income security: Welfare and social services (blue line); and

2) Government social benefits: To persons: Federal: Supplemental Nutrition Assistance Program (red line)

The greatest percentage increase occurred during President Ford’s term (29.3%). In this case, we had a Republican president and the Democrats controlled both houses of Congress. The lowest increase was during President Clinton’s administration (2.5%). At that time, we had a Democrat President and the Republicans controlled Congress for the majority of his term. While the graph above points to many instances where the Democrats were the bigger spenders, during the early 2000s when President Bush passed Medicare Part D. Even after he was advised that it would cost much more than the amount agreed upon in the budget, he pushed it through a Republican-led Congress despite this warning. Also note how welfare spending slowed, and even declined, when the Republicans took control of Congress in 1994 during Clinton’s first term.

Here’s the average percentage increase in welfare spending when either party had control of Congress:

Democrats in control: (1961-80; 1987-94; 2009) 13.7%

Republicans in control: (1995-2006) 3.5%

From the data it would seem that when Democrats controlled Congress, spending was higher. This may be why many prefer a balance, where one party controls the presidency and the other controls Congress.

After a thorough analysis, it appears the Democrats are the biggest spenders. However, as noted, President Bush (the younger) wasn’t afraid to write the check either. As this political season heats up, more promises will be made to win votes. But when it comes time to deliver, my chief concern will be, “Can we afford it?” It seems as though politicians have been playing fast and loose with our money for years while we get deeper and deeper in debt and that’s very bad news for future generations.

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